What is BenQi (QI) that Binance has listed during the week and its price has skyrocketed? BenQi is the platform with the largest total value volume ($1.7 billion) locked in the Avalanche ecosystem. Although it has just been launched, the project has achieved certain successes in a short time. So what makes this project so unique? Cryptocoin. com
In , what is BenQi (QI)? We sought an answer for you, let’s examine the project together…
What is BenQi (QI) listed on Binance?
BenQi is a money market protocol that allows borrowers and lenders to use the project. Users can lend digital assets while earning passive income in exchange for stabilizing risk-free interest rates through Benqi’s proprietary smart contract system on the Avalanche network.
BENQI aims to create a fully decentralized, liquid market protocol that aims to solve all current financial markets related issues by providing access without permission or limitation. With this innovation, implemented for both lenders and borrowers in their highly scalable networks, it aims to make borrowing more accessible than other platforms. With BenQi, users can do the following activities:
- To provide and attract liquidity instantly to a shared liquidity market.
- Borrowing instantly from a liquidity market using assets provided as collateral.
- To have a live and transparent view of interest rates at all hours of the day, depending on the market supply and demand of the asset.
How does BenQi (QI) work?
To use the protocol, a user deposits their preferred asset supported on the platform. Users will be able to earn interest and even be rewarded with additional funds based on market demand for borrowing. Invested assets can be used as collateral for users to borrow other types of assets. Any interest earned by users will be offset against accumulated interest from borrowing.
Users can source and borrow crypto assets on the platform. Token pools will be decided by the core team and the protocol’s management voting will be used when the Decentralized Autonomous Organization (DAO) starts operating. There are currently limited token pools as in the photo below.
What assets are supported in BenQi?
Depositors and lenders will be given QiTokens that they can use to withdraw funds from the pool on demand. Qitoken can be traded like any other crypto asset on Avalanche’s foreign exchange market, so this system provides an additional incentive to not only keep your savings there, but also to trade with others who want access to reliable interest rates.
What is a QI token?
The Qi token is a native token of the BenQi ecosystem, as well as a native asset on Avalanche. Qi has many use cases, including:
- Governance: QI is a token that allows holders to participate in decisions and drive the protocol. The founders will initially manage, but will eventually move to the decentralized autonomous organization (DAO).
- Reward: Qi is used to incentivize liquidity providers and liquidity miners on the platform.
- Lending and Borrowing: Lenders can also use Qi tokens to earn rewards. Borrowers can use Qi tokens as collateral assets to borrow other cryptocurrencies.